Ecobank Nigeria Limited has filed a motion at the Federal High Court in Lagos seeking an order to restrain Dr. Tunde Otudeko, son of billionaire businessman Oba Otudeko, from selling or transferring shares held in FBN Holdings Plc. The bank is asking the court to prevent any disposal or tampering with the shares until a long-standing debt dispute is resolved.
The legal move stems from an attempt by Ecobank to recover a N13.5 billion judgment debt owed by Dr. Tunde Otudeko and his affiliated companies. The dispute dates back over a decade and involves loan facilities granted by Oceanic Bank, which was later acquired by Ecobank, to Honeywell Group and its associated entities.
In its latest application, Ecobank is asking the court for a Mareva injunction — a type of order used to freeze a debtor’s assets — to block the sale, transfer, or any form of disposal of the shares held by Dr. Tunde Otudeko in FBN Holdings. The bank argues that there is a real risk that Otudeko may dissipate the assets before the court delivers final judgment in the debt recovery suit.
According to court documents filed on March 26, 2024, Ecobank claims that Otudeko holds significant shares in FBN Holdings, either directly or indirectly, and that these shares are among the few identifiable assets that could satisfy the debt. The bank stated that unless restrained, Otudeko might sell the shares, making it impossible for Ecobank to enforce any eventual judgment in its favor.
The motion also names Honeywell Group, Siloam Global Services, Anchorage Leisures, and Barbican Capital Limited as parties of interest in the matter. These companies are associated with Otudeko and are believed to have played roles in the financial arrangements that led to the current debt issue.
Ecobank’s legal team, led by senior counsel, argued that their client has been pursuing the debt since 2013, following the Central Bank of Nigeria’s intervention in a series of non-performing loans. The bank asserts that Otudeko and his companies have repeatedly failed to meet repayment obligations, leading to protracted legal battles over the years.
In December 2015, a Federal High Court initially ruled in favor of Ecobank, affirming the debt claim. That judgment was later upheld by the Court of Appeal. However, enforcement has been complicated due to asset ownership structures and delays in identifying assets that can be seized to settle the debt.
Dr. Tunde Otudeko is one of the major shareholders in FBN Holdings, the parent company of First Bank of Nigeria. His stake in the company has attracted attention in recent years, especially after a boardroom struggle that reshaped leadership at the bank. Ecobank argues that this ownership stake is crucial and must be preserved pending final judgment in the ongoing proceedings.
The bank is requesting that the court direct the Central Securities Clearing System (CSCS), FBN Holdings Plc, and the Securities and Exchange Commission (SEC) to ensure the shares are not sold or transferred. The application includes a request for a full disclosure of the number of shares Otudeko holds and for those shares to be frozen until the debt matter is resolved.
Ecobank’s filing claims that without the injunction, Otudeko may act in bad faith to frustrate the execution of a favorable court decision. The bank also stressed the urgency of the motion, citing recent movements in the capital market that may affect the value or status of the shares.
The case has not yet been decided, and the court is expected to rule on whether the injunction will be granted in the coming weeks. Legal observers say the outcome could set a significant precedent regarding how Nigerian courts handle asset freezes in debt recovery cases involving influential business figures.
The development also highlights the ongoing tensions within Nigeria’s financial sector, where banks continue to grapple with legacy loans and non-performing assets, particularly those linked to high-profile debtors. Ecobank maintains that it is acting within its legal rights to recover funds owed to it by ensuring that assets which can be used to settle the debt are preserved.
Neither Dr. Tunde Otudeko nor representatives of FBN Holdings have made public statements regarding the latest court filing. The case remains under judicial consideration, with further hearings expected in the near future.
